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This is the fourth edition of the earnings recap series. If you missed last week's recap you can read it here.
This week has seen some great and some not-so-great earnings. Some big misses and some big beats. But guess what? It doesn’t matter what the stock does, as long as the business is doing well.
A friendly reminder that the stock price reaction after earnings might have nothing to with how well/bad the company performed during the quarter.
If you have any companies that are reporting earnings next week and want them to be included, let me know in the comments. And if you’d like, you can subscribe to my Youtube channel below. Nvidia’s earnings report and more insights on Omniverse were covered on the channel.
I’ll stop wasting your time now and get right into the companies.
Monday, August 16
Paysafe 💳
Full report here
Acquires SafetyPay for $441M
Total Payment Volume of $32.3 billion, increased 41%
Revenue of $384.3 million, increased 13% vs est. 378.45mn
Net income attributable to the Company of $6.6 million, compared to net loss of $15.9 million
Adjusted EBITDA of $118.8 million, increased 8%
Reaffirmed 2021 full-year outlook
Outlook
FY2021 revenue $1.53-1.55B vs est. $1.55B
Stock ended the week down 12.7%
Roblox 🎮
Full report here
Revenue Up 127% to $454.1 Million
Bookings Increased 35% to $665.5 Million
Net Cash from Operations up 64% to $191.2 million
Net Loss for Q2 2021 was $140.1 million
Free Cash Flow increased more than 70% YOY to $168.0 million
Average Daily Active Users (DAUs) were 43.2 million, an increase of 29% YOY
42% growth in DAUs outside of the US/Canada compared to Q2 2020
46% growth YOY in DAUs over the age of 13!
Hours Engaged were 9.7 billion, an increase of 13% YoY primarily
27% growth in engagement in markets outside of the US/Canada compared to Q2 2020
29% growth from users over the age of 13 compared to Q2 2020
Average Bookings per DAU (ABPDAU) was $15.41, a slight increase YoY
“In the quarter ending June 30, 2021, cash from operations and free cash flow continued at record levels. The third quarter is off to a strong start with our highest levels of users and engagement to date,” said Michael Guthrie, Chief Financial Officer of Roblox. “We will continue to invest in our developer community, hire top engineering talent, and build out the infrastructure required to scale Roblox globally.”
Stock ended the week down 1.1%
Arcimoto 🛵
Full report here
When it rains, it pours - Shareholders
The company manufactured 74 vehicles and completed sales for 30 new and 1 pre-owned customer vehicle.
Planned main line target of production output to 425 FUV platform vehicles in 2021.
Closed on the purchase of a new facility - more than 200,000 square feet under roof on 10 acres of land.
Total revenues for Q2 increased 167% to approximately $717,000 as compared to $269,000 Q2 2020.
The Company incurred a net loss of approximately $8.2 million or ($0.23) per share, in the second quarter of 2021 compared with a net loss of approximately $3.7 million or ($0.15) per share, for the same prior-year period.
The Company had $86.5 million in total assets, $38.5 million in cash and cash equivalents, and debt of $3.9 million as of June 30, 2021.
Stock ended the week down 27.20%
Tuesday, August 17
Walmart 🛒
Full report here
Total revenue was $141.0 billion, up 2.4%, negatively affected by approximately $8.9 billion related to divestitures. Excluding currency, total revenue would have increased 0.6% to $138.6 billion.
Walmart U.S. grew market share in grocery. Comp transactions were strong at 6.1%, led by stores.
Walmart U.S. operating income increased 20.4%. Adjusted operating income increased 12.0%.
Walmart U.S. eCommerce sales grew 6% and 103% on a two-year stack.
Q2 Adjusted EPS of $1.78
Company raises outlook for second consecutive quarter
Expecting FY22 Walmart U.S. comp sales of 5% to 6% and Global eCommerce sales of $75 billion
Stock ended the week up 1.8%
Sea Limited 🌊
Full report here
Total GAAP revenue was US$2.3 billion, up 158.6% year-on-year.
Total gross profit was US$930.9 million, up 363.5% year-on-year.
Total adjusted EBITDA1 was US$(24.1) million compared to US$7.7 million for the second quarter of 2020.
Digital Entertainment
Bookings were US$1.2 billion, up 64.8% YOY.
Adjusted EBITDA1 was US$740.9 million, up 69.8% YOY
Free Fire, hit over 1 billion downloads on Google Play
Quarterly active users (“QAUs”) reached 725.2m, an increase of 45.1% YOY.
Quarterly paying users grew by 84.8% YOY to 92.2m, and represented 12.7% of QAUs for Q2 compared to 10.0% for the same period in 2020.
Paying users growing faster than active users.
E-commerce
GAAP revenue was US$1.2 billion, up 160.7% YOY.
GAAP revenue included US$904.6 million of GAAP marketplace revenue, up 190.7% YOY, and US$250.6 million of GAAP product revenue, up 90.0% YOY.
Gross orders totaled 1.4 billion, an increase of 127.4% YOY.
Gross merchandise value (“GMV”) was US$15.0 billion, an increase of 87.5% YOY.
In Brazil, where Shopee was launched in late 2019, it ranked first in the Shopping category by downloads and total time spent in-app, and ranked second by average monthly active users for the second quarter of 2021
Sea Money
Mobile wallet total payment volume exceeded US$4.1 billion for the second quarter of 2021, an increase of close to 150% YOY.
Quarterly paying users for the mobile wallet services increased to 32.7 million in the second quarter, more than doubled from Q2 2020.
Outlook:
Raised guidance for both digital entertainment and e-commerce for the full year of 2021.
Expects bookings for digital entertainment to be between US$4.5 billion and US$4.7 billion, representing 44.4% growth from 2020 at the midpoint of the revised guidance.
Expects GAAP revenue for e-commerce to be between US$4.7 billion and US$4.9 billion, representing 121.5% growth from 2020 at the midpoint of the revised guidance.
Stock ended the week up 1.43%
Ozon
Full report here
“Since 2018 we transformed Ozon into one of the largest e-commerce players in Russia with 18 million customers and close to RUB 1 billion GMV ($13.46M) per day! - Alexander Shulgin CEO
Brad (@Stockmarketnerd) summarized it here
Stock ended the week down 6.90%
Wednesday, August 18
Nvidia 🖥️
Full report here and video here
The company reported record revenues across the board with overall business revenue of $6.51 billion, up 68% year over year.
The gaming segment up 85% year over year to $3.06 billion
The data center segment up 35% YOY to $2.37 billion
Professional visualization segment up 85% YOY to $519 million, an increase of 40% from the previous quarter.
Automotive segment up 37% YOY and down 1% QOQ to $152 million
OEM and Other segment up 180% YOY and up 25% QOQ to 409 million.
During the recent earnings call, CEO Jensen Huang said he expects Nvidia to face supply constraints for most of 2022. For Q3 the company expects revenue to be $6.80 billion, plus or minus 2%.
For Q3, revenue is expected to be $6.80 billion, plus or minus 2 percent.
Stock ended the week up 3.23%
Thursday, August 19
Adyen 💳
Full report here
EUR TO USD Exchange Rate = $1.17
Processed $252.0 billion during the first half of 2021, up 67% YOY.
Net revenue was $520.0 million, up 46% YOY.
This growth came largely from the increased volume of enterprise merchants already on the platform.
Net income for the first half of 2021 was $239 million, up 109% YOY.
EBITDA was $318 million in H1 2021, up 65% YOY
Free cash flow was $288 million, up 60% YOY.
Stock ended the week up 12%
Farfetch 👗👜
Full report here
I am truly impressed with the resilience of the luxury industry, which after an unprecedented period, is already back to growth with even stronger fundamentals. I am very proud that Farfetch was a close partner for both retailers and brands in this time, delivering strong growth to our sellers, and as a result doubling our GMV in the last 24 months. - Jose Never CEO
Q2 2021 Revenue increases 43% YoY to $523 million vs est. $495.11 million
Q2 EPS ($0.17) vs est. ($0.40)
Active Consumers: 3.39M up 29.4% YOY
Average Order Value (AOV) Marketplace: $599 up 19.4% YOY
AOV Stadium Goods: $335 up 9.7% YOY
Q2 2021 Gross Profit Margin improves by 30 bps YoY to 44%;
Digital Platform Order Contribution Margin declines 90 bps YoY to 34%
Gross Merchandise Value (“GMV”) exceeds $1 billion, up 40% YOY and more than double compared to Q2 2019
Full-price sales growth of 90% drives Q2 2021 Digital Platform GMV increases of 40% YOY and 89% compared to Q2 2019
Outlook:
FY21:
Digital Platform GMV growth of 35% to 40% YoY
Adjusted EBITDA margin of 1% to 2%
Q3 21:
Digital Platform GMV growth of approx. 30% YoY
Brand Platform GMV growth of approx. 45% YoY
Adjusted EBITDA of approx. $10mn
Stock ended the week down 10.72%
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